/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, Aug. 22 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the
"Company") (TSX-V - FMT) is pleased to announce the sale of its working
interests in the Harmattan and Crossfield areas of Alberta for aggregate gross
proceeds of $14,250,000. The Company's share of production from these
properties was approximately 210 barrels of oil equivalent per day.
Harmattan Property Sale
Fairmount has entered into a letter agreement with a major Canadian
energy trust to sell its non-operated working interest of approximately 8% in
47 wells in the Harmattan area for cash proceeds of $12,000,000 before closing
adjustments. The sale has an effective date of August 1, 2008, is subject to
the execution of a definitive agreement and customary due diligence
procedures, and is anticipated to close in mid-September.
Crossfield Property Sale
In a separate transaction, on August 14, 2008 the Company completed the
sale of its interests in the Crossfield area effective June 1, 2008 to a major
Canadian energy trust for $2,250,000 before closing adjustments.
About Fairmount
The sale of the Harmattan and Crossfield properties represents completion
of Fairmount's full cycle business model with respect to these two properties.
Over the past four years, Fairmount participated in the drilling and the
construction of infrastructure to bring these properties onto production and
create reserve value. The exploration and development opportunity for these
properties was fulfilled and their reserve value confirmed through production
history. As mature long life producing assets, these assets no longer fit with
the Company's high growth business model.
